Motorola Solutions Gets Rugged With Psion

Thursday

NEW YORK (TheStreet) -- Motorola Solutions(:MSI) expects to boost its rugged computing credentials through its recent deal to purchase U.K. gadget trailblazer Psion.

"We wanted to strengthen our core business -- they help us do that," said Girish Rishi, general manager of Motorola Solutions' Mobile Computing Division, pointing to the company's inventory management products. "They have rugged devices that go into harsh environments - we will see that in distribution centers, warehousing and logistic centers."

The executive, who was speaking at a Motorola retail technology event on Wednesday, told TheStreet that Psion devices are designed to reach into a number of industry sectors. "Across the industrial arena, we will see them being used," he said, citing the textile and automotive industries as examples.

Motorola announced its $200 million cash acquisition of Psion last week, highlighting the British firm's expertise in rugged handheld devices and vehicle terminals.

Psion first came to prominence in 1980s Britain with its eponymous electronic Organiser, dubbed "the world's first practical pocket computer." The London-based firm's EPOC operating system was also the precursor to the Symbian mobile OS.

With customers in more than 50 countries, Psion should help Motorola expand its channel presence, particularly in international markets, according to Rishi.

The Motorola executive, however, said that the company has yet to decide whether to keep the Psion brand.

"In the coming months, we will have a joint team that will work through integration," he said. "We will do a study and explore the marketplace to make a determination on whether the Psion brand is maintained."

The Psion acquisition is expected to close in the fourth quarter of 2012 with the operations becoming part of Motorola Solutions' Enterprise Mobile Computing (EMC) business, reporting to Rishi.

Motorola Solutions expects the deal to be accretive to its earnings per share on a non-U.S. GAAP basis in the first full year following completion of the acquisition, and on a U.S. GAAP basis in the second full year.

Motorola also unveiled new mobile devices for the retail sector at its event on Wednesday. These included the MC40, an Android-based mobile point-of-sale device. "It's mobile computing with point of sale," Jim Welch, the senior vice president of Motorola Solutions, told TheStreet. "It also allows you to do inventory management and voice and data communications."

The Schaumburg, Ill.-based company also unveiled its SB1 Smart Badge, which it describes as a "workforce management" device providing product information and voice and data communications for retail workers.

In addition to the MC40 and the SB1, Motorola also demoed its ET1 Android tablet at the SoHo event. Launched last year, the 7-inch ET1 can be used for customer education and point-of-sale.

Shares of Motorola Solutions, which have gained 3.54% this year, were down 0.17% to $47.91 in Thursday trading.